Company Number: 13939486

Analysis Date: 2025-07-29 19:27 UTC

1. Risk Rating: HIGH

   Justification: The company shows persistent net liabilities and negative shareholders' funds, with current liabilities essentially matching current assets, indicating very limited liquidity buffer. The absence of employees and minimal operational data suggest limited ongoing trading activity. These factors collectively raise concerns regarding solvency and operational sustainability.

2. Key Concerns:

   • Negative Net Assets and Shareholders’ Funds: The company shows net liabilities of £462 as of February 2024, worsening from £216 the previous year, indicating erosion of equity.
   • Liquidity Constraints: Current liabilities (£240,000) slightly exceed current assets (£239,994), resulting in negative net current assets and a working capital deficit, which can impede meeting short-term obligations.
   • Lack of Operational Activity: The company reports no employees and minimal financial activity, raising questions about the viability and sustainability of the business model.

3. Positive Indicators:

   • Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance.
   • Clear Ownership and Control: The sole director and 75-100% shareholder, Mr. Stephen Roy Testa, is identified, which simplifies governance and decision-making.
   • Exemption from Audit Reflects Small Scale: The micro-entity reporting and audit exemption are appropriate for the company size and reduce compliance burden.

4. Due Diligence Notes:

   • Review Underlying Business Model: Investigate the nature of the real estate operations under SIC 68209 to understand revenue generation and sustainability.
   • Examine Cash Flow and Funding Sources: Confirm how the company finances its liabilities given the negative working capital and whether there are any related party loans or financial support from the sole shareholder.
   • Assess Director’s Plans and Intentions: Clarify the director’s strategic outlook, including any plans for capital injection, business expansion, or restructuring to improve financial health.
   • Confirm No Outstanding Regulatory or Legal Issues: While filings are current, verify there are no pending legal actions or regulatory concerns that could impact solvency.